You probably need to define what it is you want to achieve, e.g. the features you require and maybe the workflow needed. Projects could encompass anything from simple parent task/subtask handling all the way up to a full project management solution like http://basecamphq.com.
There have been many users here who have requested better 'project handling', some wanting a simple solution for GTD methodology (e.g. features like automatic promotion of project next actions into a unified next actions list), others who want multi-level subtasks, etc.
I am looking for GTD functionality. So far I have organised projects by creating main tasks with high priority and added sub tasks (= the physical actions). However I am not happy with this solution as it makes the whole setup somewhat complicated and scattered.
That's sounds similar to how I am using Toodledo for GTD projects.
For me, each project is represented by a parent task and each project action is a subtask. I add a brief abbreviation of the parent task name at the start of each subtask name so that when the subtasks are viewed 'loose' (e.g. in the Hotlist) I can immediately see which project they relate to.
In the Folder view I leave subtasks set to 'nested' and use manual sorting so I can see the project actions in their entirety and in sequence. All other views are set to 'flattened'.
I've found this to be enough for me to handle projects.
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